Dominion Energy's Q2 2026 GAAP EPS fell to $0.37 from $0.88 on an $820M renewable-natural-gas write-down and offshore-wind cost charges, while operating EPS rose to $0.79 on Virginia rate increases; 2026 guidance reaffirmed.
Revenue
$4.5B
+17.6% YoY
Net income
$340M
-55.3% YoY
Diluted EPS
$0.37
-58.0% YoY
Operating margin
7.3%
Overview
Dominion Energy's second quarter of 2026 has two stories that point in opposite directions. GAAP net income attributable to Dominion Energy fell 55% to $340 million ($0.37 per diluted share) from $760 million ($0.88). That drop comes almost entirely from write-downs and accounting items. Operating earnings, the company's non-GAAP measure that strips those items out, rose 9.7% to $712 million ($0.79 per share) from $649 million ($0.75). The underlying Virginia utility is growing, driven by the 2025 base-rate increase and returns on new investment, and that growth covered weaker results in South Carolina, Contracted Energy and the corporate segment.
The quarter also sits inside a bigger event. In May 2026 Dominion agreed to be acquired by NextEra Energy. Each Dominion share would become 0.8138 NextEra shares plus a pro-rata share of $360 million in cash. Closing is expected in the second half of 2027, subject to FERC, NRC and state approvals. Dominion shareholders approved the deal on September 3, 2026 (671.3 million votes for, 8.6 million against, per an 8-K filed that day).
Key figures
Metric
Q2 2026
Q2 2025
YoY Change
Operating revenue
$4,480M
$3,810M
+17.6%
Income from operations
$329M
$1,096M
-70.0%
Operating margin
7.3%
28.8%
-21.5 pts
Read 0 community reports on Dominion Energy, or write your own.Write a report
Net income attributable to Dominion Energy (total)
$340M
$760M
-55.3%
Diluted EPS (GAAP)
$0.37
$0.88
-58.0%
Operating earnings (non-GAAP)
$712M
$649M
+9.7%
Operating EPS (non-GAAP)
$0.79
$0.75
+5.3%
Electricity delivered, Dominion Energy Virginia
24.7M MWh
23.7M MWh
+4%
"High load" customer revenue (Virginia; includes data centers)
$814M
$422M
+92.9%
Operating margin = income from operations ÷ operating revenue: the share of revenue left after running the business, before interest, investment gains and tax. Net income from continuing operations attributable to Dominion was $341M vs. $759M. Discontinued operations were a $1M loss vs. a $1M gain.
Year to date (six months): revenue $9,499M (+20.5% from $7,886M); GAAP net income $961M (-33% from $1,425M); GAAP EPS $1.07 vs. $1.65; operating EPS $1.75 vs. $1.68.
Why GAAP profit halved while operating earnings grew
The two measures differ by $372 million after tax this quarter. The earnings release (8-K Exhibit 99, July 31, 2026) reconciles them. The 10-Q identifies the main pre-tax items:
$820M impairment on renewable natural gas (RNG) plants ($640M after tax). An impairment is a write-down: the company admits an asset is worth less than its book value. In April Dominion began reviewing its long-term plans for these unregulated plants in Contracted Energy. It now considers a sale before the end of their useful lives "more likely than not," and it wrote them down to an estimated fair value of $468M. Some of these RNG projects were only placed in service in late 2025.
$246M net charge on the offshore wind project (CVOW) for costs Dominion does not expect to recover from customers. Half ($123M) falls on Stonepeak, the 50% partner in the project. That is why the noncontrolling-interest line swung from a $54M share of profit to an $11M share of loss.
$195M benefit from revising the estimated future cost of retiring Millstone Unit 1, a nuclear unit that is already shut down.
$495M gain on nuclear decommissioning trust funds (investment funds set aside to dismantle nuclear plants), compared with a $289M gain a year ago. $69M of mark-to-market losses on hedges, meaning paper losses on contracts valued at current market prices.
Taken together, income from operations fell 70% even though revenue rose 17.6%. Most of the revenue gain passes straight through to costs: fuel-related revenue rose $312M, and the 10-Q says higher fuel and purchased-power costs "are offset in operating revenue and do not impact net income." Revenue growth here mostly reflects higher fuel prices, not higher profit.
Segment results (operating earnings)
Segment
Q2 2026
Q2 2025
Change
YTD 2026
YTD 2025
Dominion Energy Virginia
$670M
$549M
+$121M
$1,340M
$1,110M
Dominion Energy South Carolina
$105M
$109M
-$4M
$231M
$261M
Contracted Energy
$31M
$47M
-$16M
$150M
$156M
Corporate and Other
-$94M
-$56M
-$38M
-$162M
-$75M
Total operating earnings
$712M
$649M
+$63M
$1,559M
$1,452M
Virginia (+$121M). Two regulatory items together added more than the whole gain. The 2025 Biennial Review, Virginia's two-yearly review of the utility's base rates, added $105M after tax. "Rider equity return" added $79M. Riders are separate surcharges that let the utility earn a return on specific approved projects, such as new generation and grid work, as it builds them. These gains were partly offset by $34M of higher PJM capacity costs, after Dominion returned to the regional grid operator's capacity market in June 2025. Other offsets were $15M less in nuclear production tax credits and $14M of higher labor and administrative costs. Weather reduced earnings by $3M. Customer usage and other factors added $23M.
South Carolina (-$4M; -$30M year to date). Customer growth added $14M: electric accounts rose 2% and gas accounts 3%. Rate-case impacts added another $7M. Higher depreciation and "other" items outweighed both.
Contracted Energy (-$16M). Margin improved by $28M, but higher depreciation (-$13M), higher interest (-$17M) and other items (-$23M) outweighed it. The RNG plants are part of this segment. Their tax credits helped the segment's earnings, while the write-down sits in Corporate and Other.
Corporate and Other (-$38M). Net interest expense rose $51M after tax, reflecting heavier borrowing.
Data-center load
The 10-Q does not give a figure for contracted data-center capacity, so this report does not include one. What the filing does show is growth in its "high load" revenue class. This covers Virginia customers, including certain data centers, with 25 MW or more of expected demand and at least a 75% load factor, meaning they draw power close to round-the-clock. Revenue from these customers rose to $814M from $422M in the quarter (+92.9%) and to $1,450M from $805M year to date. Part of that rise reflects higher fuel prices passed through in bills, so it overstates volume growth. The volume measure is Virginia electricity delivered, which rose 4% to 24.7 million MWh even though the quarter had 3% fewer cooling degree days (a measure of air-conditioning demand).
Coastal Virginia Offshore Wind (CVOW)
Cost: about $11.7 billion estimated in total, excluding financing costs and including only $0.1 billion of contingency. Compared with the May 2026 update, the estimate adds about $0.4B for turbine installation (weather and fuel costs) and about $0.2B from the April 2026 revision of Section 232 metals tariffs. It subtracts about $0.4B from lower PJM grid-connection and upgrade costs. The contingency covers roughly 7% of remaining costs. Under the cost-sharing mechanism set by Virginia regulators in 2022, overruns above that are partly absorbed by Dominion and Stonepeak rather than customers, which is what drove this quarter's charge.
Schedule: the first turbines began operating in March 2026. Through July 2026, 31 of 176 turbines and 113 of 176 inter-array cable segments were installed. Installation of the final turbines is expected by the end of 2027. The estimated levelized cost of energy, the average cost per MWh over the project's life, is about $83/MWh, within the initial $80–90/MWh range.
Regulation and customer bills
Biennial review: a $566M base-rate increase took effect in January 2026, with another $210M scheduled for January 2027. The allowed return on equity is 9.80%. An appeal to the Supreme Court of Virginia is pending.
Fuel: Virginia Power expects about $1.0B of fuel costs from the year ended June 30, 2026 that it has not yet recovered from customers. It asked to finance this with bonds repaid through bills over time (securitization), which spreads the bill impact. In June the regulator put interim rates into effect while the securitization request is reviewed.
Merger commitments: the state merger filings propose $2.25B of customer rate credits funded by NextEra, including about $1.78B for Virginia, paid over two years after closing.
Financing
Dominion issued $4.475B of long-term debt in the first half of 2026. That includes $1.5B of junior subordinated notes, which rank below its other debt, issued in June. It expects $6.0–9.5B of long-term debt issuance for the full year. It also agreed forward sales of about 7.9 million shares at about $67.88 in Q2, to be settled by Q4 2026. Diluted shares rose 3.4% to 882.1M, which cost the Virginia segment $0.02 of EPS in the quarter. In May, Moody's, S&P and Fitch all moved their outlooks toward positive (Fitch to "positive watch"). The merger agreement requires NextEra's consent for dividends above $0.6675 per quarter.
Takeaway: Strip out the $820M RNG write-down and the offshore-wind charge, and Dominion's core earnings grew about 10%, almost entirely from Virginia rate increases and rider returns. The same filing shows that CVOW overruns land partly on shareholders. With the NextEra deal pending, the $11.7B estimate and its thin $0.1B contingency is the figure most likely to move GAAP earnings again.
Outlook
Management reaffirmed 2026 operating EPS guidance of $3.45–$3.69 (midpoint $3.57) and all other guidance given on its Q4 2025 call. At $1.75 through six months, Dominion is at 49% of the midpoint. Last year's second half contributed $1.74 ($1.06 in Q3 plus $0.68 in Q4), so a repeat would give about $3.49: inside the range, but below the midpoint. The January 2027 $210M rate step, rider growth and the outcome of the fuel securitization request support Virginia earnings from here. Rising interest costs, the Contracted Energy asset sales (a solar portfolio sale to Enel for $140M is expected to close by end-2026) and further CVOW cost changes are the main pressures. For shareholders, the NextEra exchange ratio now matters more than any single quarter. Remaining approvals from FERC, the NRC and the three state commissions will set whether the deal closes on the planned second-half-2027 timeline.